Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Hambleton. Inevitably, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Hambleton have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give due deliberation before putting off your Hambleton lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Hambleton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hambleton valuers.
After protracted discussions with the freeholder of her purpose-built apartment in Hambleton, Francesca initiated the lease extension process as the 80 year mark was quickly advancing. The legal work was concluded in January 2006. The freeholder’s charges were restricted to about 550 GBP.
In 2010 we were called by Mr and Mrs. K Richardson who, having moved into a studio apartment in Hambleton in July 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable flats in Hambleton with an extended lease were worth £235,200. The mid-range ground rent payable was £45 collected monthly. The lease concluded on 24 November 2092. Taking into account 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
In 2014 we were contacted by Dr O Roux who, having acquired a purpose-built apartment in Hambleton in January 2004. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical premises in Hambleton with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2103. Given that there were 77 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.